Overview: Cost Elements, Opportunities & Barriers

Establish a shared definition of affordability (price vs payment vs lifecycle), align on a local baseline project, and introduce the full end-to-end housing cost structure.

Builds on: none - this is the starting point  ·  Leads to: A2-A11  ·  Cross-series: P1 Performance Outcomes

P/A bridge: Every cost-saving proposal must name the performance outcome it preserves, weakens, or improves.

Core Concepts

• Affordability must be defined before it can be improved (price, payment, lifecycle). Can state which definition and why.
• Housing cost is layered; each lever sits in a specific cost element. Can place any idea into the cost structure.
• Local baseline matters; abstractions without a baseline mislead. Can reference a shared baseline project.

Baseline Project Archetype

Small-lot detached or attached home (townhome/duplex), 1,200-1,600 sq ft, 8-16 units/acre, Northern Colorado / Front Range. Conventional wood-frame, municipal utilities, standard code compliance. All ranges below apply to this archetype unless noted.

Cost Elements (L1 Summary)

Working baseline - ranges need local verification before use in policy or public settings.

Top 10 Cost Reduction Opportunities (CROs)

1. DENSITY - Increase effective residential density - $15-60K
2. SIZE - Reduce minimum home size - $10-50K
3. INFRA_BURDEN - Reduce off-site infrastructure obligations - $5-50K
4. STANDARDS - Right-size street and parking standards - $5-30K
5. PREAPPROVAL - Pre-approve plans/details/archetypes - $5-30K
6. METHODS - Adopt modular/prefabricated systems - $5-30K
7. SHARED_INFRA - Share infrastructure across units - $3-25K
8. DURATION - Reduce project duration - $3-25K
9. FIN_PREDICTABILITY - Reduce financing uncertainty - $3-20K
10. UTILITY_FEES - Differentiate tap fees by demand - $5-20K